Kenya to sell cheaper power to Rwanda in 2015

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GEOTHERMAL: The commissioning of Phase 2 at Olkaria has boosted Kenya.

NAIROBI, Kenya – Next year Kenya has agreed to sell power to Rwanda and help ease growing demand for electricity but at lower costs.

Recently Kenya added 140MW from the officially launched second phase of the Olkaria Geothermal plant. Costs for consumers are expected to be cut by 30% and Rwanda  will also benefit.

Power trade deals within the region have been previously hampered by lack of sufficient transmission infrastructure.

Under the Power Purchase Agreement signed, Kenya will charge 12 US cents per kilowatt hour for the electricity sold to Rwanda while Uganda, through which the transmission line will pass, will impose a wheeling charge of 2.08 US cents.

Uganda Electricity Transmission Company CEO Eriasi Kiyemba said, ”Because of weak interconnection at the time we could not help each other and had to turn to expensive power.”